PARIS-A week-long trial starting Monday in the alleged insider-trading case involving European Aerospace Defence & Space Co. could have deep repercussions at the parent company of plane maker Airbus as well as on the authority of France's stock-market watchdog Autorité des Marches Financiers. The case began in June 2006, when EADS disclosed that its program to develop the A380 double-decker aircraft was plagued with delays and cost overruns, sending its shares down 26% in one day. The A380 woes led to upheaval at the Franco-German aerospace company, which was torn apart by nationalistic rivalries. A management shuffle ensued. The EADS stock fall also led the AMF to look into whether some company shareholders and executives knew about the A380 problems ahead of the June announcement and particularly when they had sold shares or exercised stock options in November 2005 and March 2006. Following a three-year investigation, the AMF's sanction committee, which has an administrative jurisdiction, is trying 17 individuals, and two EADS founding shareholders-French media group Lagardère SCA and German automaker Daimler AG-on charges of insider trading.[...]. EADS, which faces charges of having been too slow in disclosing the A380 woes, has said it provided investors with timely and accurate information.
PARIS-A week-long trial starting Monday in the alleged insider-trading case involving European Aerospace Defence & Space Co. could have deep repercussions at the parent company of plane maker Airbus as well as on the authority of France's stock-market watchdog Autorité des Marches Financiers.
The case began in June 2006, when EADS disclosed that its program to develop the A380 double-decker aircraft was plagued with delays and cost overruns, sending its shares down 26% in one day. The A380 woes led to upheaval at the Franco-German aerospace company, which was torn apart by nationalistic rivalries. A management shuffle ensued.
The EADS stock fall also led the AMF to look into whether some company shareholders and executives knew about the A380 problems ahead of the June announcement and particularly when they had sold shares or exercised stock options in November 2005 and March 2006.
Following a three-year investigation, the AMF's sanction committee, which has an administrative jurisdiction, is trying 17 individuals, and two EADS founding shareholders-French media group Lagardère SCA and German automaker Daimler AG-on charges of insider trading.
[...].
EADS, which faces charges of having been too slow in disclosing the A380 woes, has said it provided investors with timely and accurate information.
it provided investors with timely and accurate information
Depends which investors.
